empty text

empty text

e*branch Login


Benefits of Car Leasing

Leasing a car means that you rent it. One common issue is that people opt to lease a car that they otherwise would not be able to purchase.

You will need less money to make a down payment on the car than you would if you were purchasing it on credit.

You have access to a few options at the end of the lease. For example, you can buy the car, return it to the leasing company, or ask the leasing company to sell it on your behalf.

You will have lower sales tax to pay when you lease a car as opposed to purchasing it.

Downsides of Car Leasing

While there are some advantages associated with leasing a car, there are also some downfalls:

When you lease the car, you don't accumulate any ownership interest.

You are only able to lease a car if you have a strong credit history.

In some areas, leasing a car can be very expensive, and the initial down payments may be high. In such cases, you may need to do some research to find the best deals.

When you lease a car, you will have mileage restrictions. If you exceed these, you will be required to pay a lump sum at the end of the lease.

If you wish to terminate the lease partway through the contract, this can be expensive. As such, before you enter into an agreement, you should make sure that you can afford to make the payments over the full duration of the contract.   Far more difficult to get out of a lease and there will be no residual asset for you to trade in when you decide you need a new car.  You start over from scratch and will have to be able to put up cash for initial down payment on your next vehicle purchase.    

You can not make any modifications to the vehicle because you are not the legal owner of the car.

Advantages and Disadvantages of Buying a Car

When you purchase a car, you legally own it. As such, you can drive as many miles as you wish per year without worrying about the knock-on impact this will have on the cost of the lease. However, you will need to make a larger down payment, which means that more of your money is tied-up in the vehicle than would be if you legally owned it.

You can sell your vehicle at anytime to downsize or reduce costs.  No long term contract to uphold.  Just need to be able to payoff any remainder on your loan.  When leasing you either have to payoff the remaining payments of the lease or buyer needs to purchase the car at the remaining residual value which may or may not be what the car is truely worth. 

If you are happy to own a car over a longer period of time, purchasing can be the better option. However, if you want to regularly upgrade your car and drive newer vehicles that have low mileage, leasing may be preferable option.


Before deciding whether to buy or lease a car, you should first evaluate your long-term plans. The option that is best suited to your needs will vary according to your driving habits, financial status, and what you are looking for in a car.

Copyright © 2020 University Credit Union  13241 S.W. 136 St, Miami, FL 33186